Bank Al-Izz provided working capital to Tijarah Construction. based on the principle of musharakah mutanaqisah amounting to OR
Q: Organizations determine whether to take on debt and how much to take on are common and necessary…
A: A Companies consistently look for wellsprings of subsidizing to develop the business. Subsidizing,…
Q: ould accept the factoring service offered by Powell. What use should the company make of any finance…
A: Cash conversion cycle indicates that number of days required to recover money from inventories to…
Q: The long-term asset account group is used for which of the following funds? Enterprise Capital…
A: Introduction: Long-term assets are investments in a firm that will benefit it for a long time.…
Q: 9. The cost of construction of a university dormitory would be shown on a cash flow statement as a.…
A: Solution:- 9:- correct option is b. Cash flows from investing activities. Reason:- The cost of…
Q: The process of raising thi
A: There are many methods to raise funds directly, including issuing shares and debentures.
Q: An investment made in a fixed asset is similar to an investment made by a bank when it lends money.…
A: It is a long-term segment of a asset or property that an organization has and uses in the generation…
Q: fill in the blanks Revenues are monies an organization received in exchange for ________ and…
A: SOLUTION REVENUE = PRICE OF GOODS & SERVICES * NO OF UNITS SOLD OR NO OF CUSTOMERS.
Q: Describe the methods used for analyzing the capital investments of organizations.
A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…
Q: The financial statements for MHM Bank (MHM) are shown below: Calculate the dollar value of MHM’s…
A: Most accounting ratios are calculated using financial data from the company's bank. Such ratios are…
Q: The primary sources of funds available to a business include all of the following excepta. debt…
A: The mix of equity and debt is a business organization is known as the capital structure of the…
Q: E.) Is a contractual financial product sold by financial institutions that is designed to accept and…
A: Financial Institution: Financial institutions refers to the business that provides a marketplace for…
Q: The factor payment for the use of financial capital (loans and equity investments) is called...…
A: The cost of finance: Equity and debt are two sources of capital for any business. Investors who…
Q: 1. A farmer borrows fund from a government financing institution. In turn, he uses the fund for…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: (b). Using the information given, assess whether Rowett should accept the factoring service offered…
A: The proposal of factoring need to be accepted only when it increases the company net income and if…
Q: Short-term investment and long-term investment will be recorded in what type of financial statement…
A: Balance sheet refers to the one of the financial statement of a company which reflects the overall…
Q: a. Explain the description and show examples of the following terms completely and clearly: implicit…
A: The financial system of a nation includes different components such as financial institutions,…
Q: In the Intermediation Approach, bank uses: a) Capital and Labour to produce loans and other earning…
A: Financial intermediation approach of banking states that banks collect deposits and then lend these…
Q: Which of the following would be part of a financial manager's investment decision? * a. Collecting…
A: The financial manager is supposed to take three types of decisions: Investment decision Financing…
Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…
A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…
Q: Given a financial institution that make money in three ways: interest income, interest income, and…
A: Banks and Financial institutions make most of their money from loaning and re-loaning money. Low…
Q: Megalopolis Bank has the following balance sheet and income statement. For Megalopolis, calculate:…
A: Return on equity is a profitability indicator computed by dividing the net income's equity. ROE is…
Q: Which information is reflected in the capital account of the balance of payments? a. Purchases and…
A: Balance of Payment (BOP) : The BOP is the details of all the international transaction that a county…
Q: Discuss how the existence of Islamic finance fulfils the objectives of Shariah.
A: Shariah The term used in Islamic religion accustom with the rules regulation which are to be…
Q: Which of the following is a cash inflow from an investing activity? A. Borrowing from a bank B. Sale…
A: The cash flow statement is part of the financial statements of the company. It is prepared at the…
Q: Explain the three capital components used by firms to raise funds.
A: Solution- Three capital components of raising funds- 1.) Equity capital figure…
Q: True or false, the financing activities section of the statement of cash flows reflects the cash…
A: Cash flow statement means the statement which shows the cash inflow and outflow from three different…
Q: investment
A: Investment banks are defined as financial enterprises who majorly provide various types of financial…
Q: Examine the importance of working capital to busineses. ( make reference to the related FASB,…
A: Importance of Working Capital to Business- Working capital is simply what it says – it's…
Q: For long-term construction projects, the amount of “billings” is reported in the balance sheet by:…
A: Progress billings are made at every stage of construction projects to prepare payments. These…
Q: The complete set of financial statements of an Islamic Bank should include A)Statement of cash…
A: The financial statements of an Islamic Bank include all of the following options so as to enhance…
Q: What are the short term and long term financing available for companies to generate funds for…
A: Financing is the acquisition of funds from various sources for smooth running of business. The firms…
Q: Answer TRUE or False to the following statements/questions: D) The financing activities section of…
A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for…
Q: Suppose that an estimate of U.S. federal spending showed that 46% was for entitlements, 18% was for…
A: US federal reserve- It is the central banking system of the US that is responsible for managing the…
Q: The Chief Finance Officer of Kulit Company follows the policy of matching the maturity of assets…
A: cash, receivable and inventory should be financed with long-term debt or equity
Q: borrower’s personal investment in the operations of a business
A: The correct answer is b. Capital.
Q: Examine the role of bank credit in financing of working capital. What are the types of bank credit?
A: In order to conduct the business activity successfully funds are required, these funds are invested…
Q: a) Prepare Investment a/c in the Books of Shilpa and Co. for the Investments it made in Rajeev
A: Working Note :- Particulars Amount $ Amount $ Debentures purchased on…
Step by step
Solved in 2 steps with 1 images
- Bank Al-Izz provided working capital to Tijarah Construction. based on the principle of musharakah mutanaqisah amounting to OR 400,000. Profit and loss sharing ratio as agreed by both parties is similar to the ratio of capital contribution which is 40:60 (Bank: Customer) at the beginning of the contract. The repayment shall be equal throughout the contract period. The profit and loss for the above project is as follows: Year 1 Loss of OR 180,000 Year 2 Profit of OR 150,000 Year 3 Profit of OR 220,000 Year 4 Loss of OR 80,000 Determine the profits or losses to be recognised by Bank Al-Izz for Year 1 Year 2 Year 3 Year 4Company A has entered into a mudharabah contract with Bank Shari’ah in which the company provides monetary capital of RM1,000,000. Company B who had agreed to invest RM1,000,000. The profit sharing between three of them is 1:1:1 for Company A, Company B and the Bank respectively. Bank Shari’ah entered into another mudharabah contract with Company C to undertake a housing development project. Bank’s contribution in this project was RM2,000,000 and they had agreed on the profit-sharing ratio of 80 : 20 (Bank : Company C). Assume the following results of the venture: Year Profit / (Loss) 1 (750,000) 2 700,000 3 1,500,000 You are required to: i- Determine the profit/loss of the above transactions. Show how profit/loss will be allocated for all parties involved. ii- Prepare accounting entries and T-accounts for URIA and Mudarabah financing.Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 28,000 −$ 28,000 1 13,400 3,800 2 11,300 9,300 3 8,700 14,200 4 4,600 15,800 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. If the required return is 10 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 66,000 −$ 66,000 1 42,000 28,400 2 36,000 32,400 3 24,000 38,000 4 15,200 24,400 a-1. What is the IRR for each of these projects? a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 12 percent. What is the NPV for each of these projects? b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A? c-2. Over what range of discount rates would you choose Project B? d. At what discount rate would you be indifferent between these two projects?Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 66,000 −$ 66,000 1 42,000 28,400 2 36,000 32,400 3 24,000 38,000 4 15,200 24,400 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 12 percent. What is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. Over…Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$29,700 -$29,700 15,100 4,650 13,000 10,150 9,550 15,900 5,450 17,500 0123 + 4 a-1 What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B a-2 Using the IRR decision rule, which project should the company accept? Project A O Project B % % 2 lo this decisi orrect
- Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 28,700 –$ 28,700 1 14,100 4,150 2 12,000 9,650 3 9,050 14,900 4 4,950 16,500 a-1 What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2 Using the IRR decision rule, which project should the company accept? Project A Project B a-3 Is this decision necessarily correct? Yes No b-1 If the required return is 12 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2 Which project will the company choose if it applies the NPV decision rule? Project A Project B c.…Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 28,500 −$ 28,500 1 13,900 4,050 2 11,800 9,550 3 8,950 14,700 4 4,850 16,300 a-1. What is the IRR for each of these projects? a-2. Using the IRR decision rule, which project should the company accept? multiple choice 1 Project A Project B a-3. Is this decision necessarily correct? multiple choice 2 Yes No b-1. If the required return is 11 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. Which project will the company choose if it applies the NPV decision rule? multiple choice 3 Project A Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate…Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$56,000 32,000 26,000 19,000 13,200 -$56,000 19,400 23,400 28,000 25,400 1 3. 4. a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 12 percent. What is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.., 32.16.) b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and…
- Bruin, Incorporated has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 41,300 1 19, 100 2 17,800 3 15, 200 4 8,400 -$ 41,300 6,300 14, 200 17,900 30,300 a-1. What is the IRR for each of these projects? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 11 percent. What is the NPV for each of these projects? a-1. Project A Project B a-2. Project acceptance b-1. Project A Project B b-2. Project acceptance Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. Which project will you choose if you apply the NPV decision rule? % %Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 61,000 -$ 61,000 1 37,000 23,900 31,000 27,900 21,500 33,000 4 14,200 24,900 a-1. What is the IRR for each of these projects? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 12 percent. What is the NPV for each of these projects? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c-2. Over what range of discount rates would you choose Project B? Note: Do not round…Tony Corporation has a construction contract in progress as follows :Total contract price: $550 millionCosts incurred to date: $225 millionEstimated cost to completion: $340 millionPayments invoiced & received: $290 million Question :Calculate the amount that can be recognized in the income statement and statement of financial position with assumes performance obligation satisfied.